Title Description: Using a loan calculator can ease your loan application process in more ways than one. Read on to know more.

Are you planning on taking a personal loan to improve the interiors of your home? If yes, then how about using a loan calculator to determine your eligibility and EMI amount?

Some banks and NBFCs let you apply for a personal loan online, while also allowing you to use their online loan calculator. It’s an important tool because it gives you a clear idea of your financial standing and lets you plan accordingly.

Read on to know the benefits of using a loan calculator before you apply for a personal loan.

Know your Loan Eligibility

A personal loan can be used for a wide range of purposes like sending your kid abroad or buying an expensive gadget. Considering the easy accessibility, it’s easy to get tempted to opt for a higher loan amount.

But before opting for said amount, did you consider if you’re capable of repaying it? This is where a personal loan eligibility calculator kicks in. Use it to determine exactly how much loan you’re capable of taking, depending on your current financial status.

Determine the EMI Amount

Once you’ve decided the loan amount, your next job is to determine how much EMI you’re liable to pay every month. Knowing the EMI amount beforehand will help you plan your finances better.

For example, if you absolutely can’t help but take a high loan amount, then it becomes all the more necessary to determine the EMI payments.

A personal loans EMI calculator will help you do so, which will in turn allow you save up a little and curtail additional interest charges before the loan tenure sets in.

Learn about Part Prepayment Amount

Part prepayment facility is a great option if you’re looking forward to repaying your loan as fast as possible. Based on your EMI amount, you can calculate the minimum part prepayment amount you’re liable to pay.

Once you’ve zeroed in on a figure, you can work towards accumulating the requisite funds, so that you can clear your debt faster. You can use a part prepayment calculator any time before or after the loan is sanctioned to better plan your payment strategy.

Be Aware of Foreclosure Charges

Some financial institutions will charge you a bomb if you plan to foreclose your loan account. There’s no point in losing money in clearing foreclosure charges when you can use it for other purposes.

So, before applying for a loan in a particular bank or NBFC, use their online foreclosure calculator to get an approximate idea of how much you might be liable to pay. This will help you a lot as you can avoid lenders who charge a high amount and thus, save your hard-earned money.